Determine the investment demand function

Reference no: EM133289231

Assignment:

Assume that the investment demand function is represented by the following algebraic function: I = $300 - 2000r where $300 represents autonomous investment and "r" represents the interest rate.

a) Calculate how high the interest rate would have to rise to drive planned investment to zero.

b) Calculate the amount of investment that would take place at an interest rate of zero.

Reference no: EM133289231

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